Chances of Halifax mortgage with defaults?

poppy1010

Hi

First post on this forum, so hoping to get some opinions & reassurances please.

Our current house is mortgaged with Halifax at the moment (although in my partners name only not mine). We're looking to move to a house and have seen a new build we're desperate to buy. The price of the house we want is 425k. We have a 10% deposit to put down from equity in our current house. Our joint income is 90k so this means a mortgage of x4.25 our joint income taking into account the 10% deposit.

My partner has debt of 11k and myself 3.5k at present. But this would be paid off using remaining equity from the property. Therefore debt will be £0.

My partners credit score is 999 there about and mine is 997 with Experian (as of today). Both classified as 'excellent' ratings.

Now the bad bit. I sadly have two defaults. The first was for £598 issued 2011 and the second was £2,143 issued 2013. Both are satisfied with nothing owing on them. I am trying to get the 2013 one removed, but that doesn't help me now of course.

My partner has excellent history with money. No issues there.

Our mortgage advisor has told us that due to the amount we want to borrow, 90% LTV he recommends Halifax. Obviously our current mortgage is with them (in partners name only), so I'm hoping this is going to help? are the defaults going to cause huge issues?
Since these I've been perfect with money (hence my credit score now) and have a credit card of £3,500 on 0% (with a 9.5k limit).

Do you think Halifax will be ok with this?

We COULD potentially have a 15% deposit BUT this means we couldn't wipe our debt with the remaining equity. At this time debt will be 7k for my partner and 2.7k for me (his income 55k and mine 35k).

Any help appreciated.

Many thanks

Verix

Halifax 90% products aren't available on all new builds (but certainly on quite a few) so perhaps check that.

There's not really a way of knowing without running the DIP as Halifax's criteria on defaults is pretty hazy. If your advisor runs it with a 10% deposit being put down it might decline but he can always try it with 15% deposit on the same footprint to see if that works.

Good luck with it.

poppy1010

Thanks Verix.

The Mortgage Advisor is one the new build Company recommended. So he knows it's a new build as he works for them (and subsequently no fees we have to pay as I believe the new build Company pays the fees).

I'm so worried as I've read a lot about DIP not being as thorough as a full application.

Our situation is a bit complicated because it would involve completing on our property 6 months before the new house is ready (we will move in with parents or something). So my MAJOR concern is getting rejected after we have exchanged contracts on our house! which would be a nightmare. So I would be inclined to ensure a full application for mortgage is made before we exchange on our own house (knowing it will likely expire nearer to time!) but at least that would give me indication?? does this make sense?

Regarding 10/15%, can you put both amounts through on the application? without being credit checked twice then?

kingstreet

Halifax 80%+ products are available if the builder and broker are on the Halifax newbuild panel.

You won't be able to exchange contracts on your purchase without having a formal mortgage offer and that means a full application would have to be submitted. The builder will be expecting you to exchange contracts in 28 days from reservation.

Halifax products now last until 30 June 2016 and can easily be extended if the property won't be finished by then.

As to 90% with defaults? Who knows, it's virtually impossible to second-guess the Halifax system, but I would have my full application submitted at the beginning of the month, not the end.

poppy1010

Kingstreet thanks for your message. The builder is on the Halifax new build panel yes.

The new build will not be ready until July 16, that's the projected completion date.

That's great re: extension easily done.

Can I ask why do you say you would recommend the full application is sent at the beginning of the month not the end?? sorry I have no clue why this would be.

kingstreet

Halifax has form for increasing its required credit score towards the end of the month if it has written the amount of business targeted for that month.

I can't tell you if you will be successful or not. That would be pure speculation and pointless.

poppy1010

Very interesting! and a good tip, many thanks.

Have just sent you a pm.

libf

poppy1010 wrote: »

Very interesting! and a good tip, many thanks.

Have just sent you a pm.

Did you not read kingstreet's sig?